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Bill

HR 10072

Hardworking Seniors Act

119th Congress Introduced by Michelle Fischbach

Allows Medicare Part A beneficiaries with earned income to contribute to HSAs, expanding tax-advantaged healthcare savings after 2026.

Introduced in House
1
WeVote Research Nonpartisan
Bill Summary · HR 10072

Summary of HR 10072 (119th Congress) – Hardworking Seniors Act

Purpose and intent

The Hardworking Seniors Act aims to expand health savings account (HSA) eligibility for certain individuals by allowing those who are entitled to Medicare Part A to contribute to HSAs. Specifically, the bill amends the Internal Revenue Code to recognize Medicare Part A entitlement as a qualifying condition for contributing to an HSA, with the goal of giving seniors who work or have earned income an additional tax-advantaged savings option for healthcare costs.

Key provisions and changes

  • Expansion of HSA eligibility (primary change): The bill adds a new eligibility criterion to §223(c)(1)(B) of the Internal Revenue Code, such that an individual with entitlement to Hospital Insurance benefits under Part A of Title XVIII of the Social Security Act (Medicare Part A) can contribute to an HSA. This creates a pathway for Medicare-eligible individuals to fund HSAs, subject to existing HSA rules.

  • Treatment of HSA distributions for those with Part A entitlement: The bill adjusts §223(d)(2)(C)(iv) to ensure that individuals who purchase health insurance through an HSA account and who are not otherwise eligible individuals are appropriately described in relation to Part A entitlement. This aligns distribution rules with the expanded eligibility.

  • Coordination with penalties for non-qualified expenses: §223(f)(4)(C) is amended so that, except for eligible individuals, subparagraph (A) applies. This clarifies penalties and coordination for HSAs when funds are used for non-qualified medical expenses, in the context of the expanded eligible population.

  • Conforming amendment: §223(b)(7) is updated to reflect the new eligibility category, inserting a parenthetical to exclude the entitlement for Part A beneficiaries from certain Social Security Act references when describing eligible individuals.

  • Effective date: The changes apply to months beginning after December 31, 2026, for taxable years ending after that date.

Who would be affected

  • Medicare Part A beneficiaries who are earning income and contributing to HSAs: The primary group newly eligible to contribute to HSAs under the bill. This includes individuals who have entitlement to Part A benefits by reason of age.

  • HSA administration and tax reporting: Providers, custodians, and taxpayers would need to apply the revised eligibility criteria when determining HSA contributions and distributions for affected individuals.

Procedural and timeline notes

  • Introduction and referral: The bill was introduced by Representative Michelle Fischbach on August 10, 2026 and referred to the House Committee on Ways and Means.
  • Effective date as specified: Provisions become effective for months after December 31, 2026, with applicable tax years ending after that date, influencing plan years and contribution timing going forward.

Potential impact and considerations

  • The bill could enhance medical cost risk management for some working seniors by enabling tax-advantaged savings for healthcare after Medicare Part A entitlement.
  • It may affect household retirement planning, HSA contribution limits (in line with existing HSA rules), and the interaction with Medicare enrollment decisions.
  • As a tax policy change, administrative guidance from IRS would likely accompany implementation to clarify eligible contributions, distributions, and penalties for the newly eligible population.

Compiled from official sources — confirm details with the bill’s official record.

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